Horizons September 2019 by Lloyd's Register

Issue 50, September 2019

Horizons. Connecting tomorrow’s thinking to the challenges of today.

WHAT’S ON THE HORIZON FOR: London International Shipping Week

Innovation

Regulation

Innovation.

Digitalisation and sustainability put under the spotlight. Digitalisation drives shipping

Special features.

With Interferry, Monaco Yacht Show and Gastech coming up, LR examines yachts, LNG and ferries. Ship lenders make step change as Poseidon Principles kick in

Considering LNG?

Can superyacht designs be innovative and still comply with international safety standards?

Fresh wave of investment in growing ferry sector

On trend.

The risks and opportunities facing maritime will be in focus as world shipping congregates this LISW 2019.

Focused and effective action defines Alastair Marsh’s leadership as LR CEO.

All eyes on London

Stand and deliver

Industry viewpoint

Regulation.

Andrew Sillitoe looks at some of the regulatory developments affecting specific ship types. The changing regulation landscape of yachts, ferries and gas tankers

In focus.

Technical matters.

A selection of technical investigation case studies that demonstrate assurance beyond Class. Assurance beyond Class

News.

Catch up on the latest developments at LR from our teams around the globe. 22

What’s happening in our world

Meet the team With LISW 2019 just around the corner, head of Brand & External Relations Nicola Good seeks leaderships view from CEO Alastair Marsh about the importance of risk and opportunity management in today’s maritime industry. LR contributor Paul Bartlett speaks to two leading bankers about what Poseidon Principles means for shipping. Viv Lebbon and Paul Carrett work with LR subject matter experts for more insight into LNG as fuel and yacht innovation. Our designer for this issue is Matt Bradford.

Nicola Good

Paul Carrett

If you have any feedback or suggestions for upcoming issues of Horizons, we’d love to hear from you. Please get in touch with Paul Carrett at paul.carrett@lr.org

Viv Lebbon

Paul Bartlett

Lloyd’s Register and variants of it are trading names of Lloyd’s Register Group Limited, its subsidiaries and affiliates. Care is taken to ensure that all information provided is accurate and up to date. However, Lloyd’s Register accepts no responsibility for inaccuracies in, or changes to, information. Lloyd’s Register Group Limited, 2019. A member of the Lloyd’s Register group.

Contents

London calling.

I am delighted to welcome friends, partners and new colleagues to our global, maritime capital, for London International Shipping Week (LISW).

Whilst we all know the big issues facing us – on disruptive technologies or a lack of finance - we must never forget about our people. Without whom, we can do nothing.

Across the world, our maritime sector is responding to significant challenges, and preparing to capitalise upon the many opportunities that those challenges present. I am proud to champion a maritime nation that has been at the forefront of industry developments for centuries. I’m even prouder that both the industry and government have firmly committed to playing a leading role in shaping maritime’s future. To respond to those challenges and provide answers to the big questions – such as the environment, digitalisation and automation, we must collaborate. Not just within our countries, but between countries. That’s what LISW is all about. Its comprehensive programme brings together the brightest minds and senior figures to ensure that through thought-provoking and robust discussion, we can achieve more together than we would alone. And we must ensure that these one-time events outlive themselves to create permanent dialogue. Whilst we all know the big issues facing us – on disruptive technologies or a lack of finance – we must never forget about our

people, without whom, we can do nothing. And I’m pleased to see real global efforts to increase diversity in our global workforce. Whilst we have established the Women in Maritime programme in the UK, we should do more to create links across borders to learn, share and grow together. Equally, we can do much more to share best practice and insight on what works to attract young people into this most global of industries. Today in the UK our maritime sector has a higher profile than it has had for decades and we’re determined to do all we can, working with government to enhance our competitiveness, drive growth in our coastal communities, minimise the sector’s impact on the environment, innovate the technologies of tomorrow, and invest in our people. Many of you have asked me about Brexit. Whilst there are plenty of events that will look at this specifically, allow me to make one thing very clear. Regardless of the type or timing of Brexit, the UK will remain the competitive, dynamic, reliable and high-quality maritime centre that you have always known. Enjoy LISW and I look forward to seeing you throughout the week! Harry Theochari Chair of Maritime UK

Horizons September 2019 3

ON TREND

All eyes on London. The risks and opportunities facing maritime will be in focus as world shipping congregates at London International Shipping Week (LISW).

For nearly 260 years, London has been the seat of Lloyd’s Register’s headquarters. A global business, LR has been part of the UK maritime fabric for generations. The initials ‘LR’ have been present on the side of ships for centuries and the expression A1 emanates from our passion with quality and standards. As world shipping pays a call this LISW (9-13 September) and with the status of the UK capital as a maritime centre having been in question for many years, legacy institutions must recognise the risks and opportunities that lie ahead. As guardian of the brand, LR CEO Alastair Marsh is adamant that the world’s oldest marine classification society will not lose what it is good at. “We need to keep what makes this brand great. We must absolutely hold on to it and 4 On trend

cherish it, but we need to make our brand relevant to the modern world – you can’t be stuck in the past,” he tells Horizons. “We have the benefit of a long-standing heritage, specifically in marine, but we still need to nurture this position. By this, I mean we need to stay relevant with our digital products and services. “The maritime industry understands that even though we are an old company, with long-standing traditions, we are innovative. Innovation and co-creation with class is so important. If we can do all the new things and continue to live up to our history, we will remain relevant and strong in the future. It’s not an easy thing to do, but no-one can afford to stand still.”

Industry viewpoint: Maritime London For Maritime London, the industryled body representing the maritime professional services in the UK, LISW will provide yet another platform for its efforts to ensure the UK remains a world-beating location to conduct maritime business. From its base in the Baltic Exchange, down St Mary Axe, the association is among the cornerstone entities at the epicentre of UK’s shipping, that are actively supporting the industry’s evolution while embracing London’s long and proud maritime history. “We are all aware of the discourse when it comes to automation and decarbonisation,” says Maritime London chief executive Jos Standerwick. “If we are to successfully tackle these

fundamental changes not only to the asset but the supply chain within which ‘the ship’ operates, leadership from our leading firms is vital.” Safety is at the heart of shipping, says Standerwick, adding that as we grapple with decarbonisation and increased automation, the role of the classification societies will become increasingly important as they proactively support the industry through the fast-changing regulatory and technological landscape.

cleaner, more sustainable future in a commercially viable manner, Standerwick says. Not only is this good news for the shipping industry, it is also good news for the UK’s world-beating maritime professional services sector. If our sector is to grow and thrive in this brave new world, we cannot afford to stand still. We must lead from the front, set the example and showcase the expertise that has defined our sector’s offer for so many years.

The work that is being done in the fields of sustainable environments, risk management and connected supply chains is making a substantive difference and will work towards ensuring that the shipping industry is able to safely transition to a

Industry viewpoint: Society of Maritime Industries Maritime engineering in the UK needs a voice and its mouthpiece is the Society of Maritime Industries (SMI). Its membership covers a broad range of sectors within the definition of “maritime”, including defence and security, commercial shipbuilding, marine science and technology, autonomous systems, digital technologies and ports. All these sectors have member-based councils who drive the work of the SMI. Providing a range of activities to support and promote members and industry, business development and sourcing opportunity are fundamental activities for the SMI. Each year, SMI organises around 35-40 events which could be anything from supplier days for Type 31e (new UK Royal Navy frigate) projects right

through to managing the UK pavilions at major international maritime trade shows. All events are designed to connect and promote business. SMI also undertakes work to improve the business environment for companies in maritime through its work with UK government departments such as the Department for Transport (DfT), Department for Business, Energy & Industrial Strategy (BEIS) and the Department for International Trade (DIT). In the past two years, there has been greater engagement with DfT and BEIS, following the publication of the Foresight Future of the Sea and the Maritime 2050 report.

has been integral to the development of a five-year plan to develop exports with the DIT so that UK companies feel they are supported to the level of competitor nations. Research and innovation have been supported via BEIS and key strides have been made this year in the establishment of MarRI-UK, a research body for the maritime industry. SMI sits on the board of MarRI-UK and many other industry bodies to provide a voice for the maritime engineering and business sector, he adds.

According to SMI Business Development Director, Tom Chant, the organisation

Horizons September 2019 5

Industry viewpoint: Women in Maritime Taskforce

Maritime UK’s Women’s Taskforce Chair and WISTA UK President, Sue Terpilowski OBE, has reasons to celebrate the positive steps being made by maritime to increase diversity, but why has Maritime UK campaigned for change? According to ITF data, women make up only 2% of the world’s maritime workforce and those figures are replicated in the UK too. “Of the 14,350 officers in our country, only 3% are women. In specific areas technical offices only 4%. Engine officers in total are 6,500 of which only 1% are women. On the land side, statistics from HR Consulting show that globally, women represent 36% of the shore-based maritime workforce. Most of these female employees work in administrative, HR, marketing, junior and professional levels with very few reaching managerial level and above. At the executive level it is even worse at 0.17% and non-executive roles don’t fare much better. In the two years since John Hayes MP, shipping minister during LISW 2017, laid down the challenge for UK Maritime to address the lack of diversity and gender equality, a lot has happened. Maritime UK has established its Women’s Taskforce, a movement of likeminded people who desire real changes in diversity within the maritime sector. The taskforce’s subgroups concentrate on the delivery of its work. There are currently four subgroups: Recruitment, Retention,

6 On trend

Total Package (includes Renumeration) and Charter Group. Our pledge/charter have set themselves challenging goals and targets to achieve. LISW 2019 provides an ideal platform to review progress, celebrate successes and set new objectives for the next two years. Recent accomplishments include its pledge – LR is among the signatories and four pilot charter companies that are starting to achieve some of the group’s short-term goals. We will roll out the charter to more companies, having taken on-board the learnings from the pilot. During this year’s LISW, the taskforce’s recruitment group will launch work conducted with Professor Averil MacDonald OBE on its version of People Like Me/My Life My Skills. People Like Me is a revolutionary approach that uses girls’ natural tendency to create and articulate their self-identity based around personality types. A maritime guide will have careers matched to the 12 personality types to inspire the next generation into making maritime their career choice of preference. An online version of My Life/My Skills is also being produced in conjunction with WISE. Recruitment processes are also under scrutiny with this subgroup seeking to eliminate the barriers that can deter women from submitting job applications. Two initiatives to address gender-balance in recruitment will be launched. One is

the Interview Pool – a scheme whereby female volunteers support businesses lacking women among their ranks to broaden their recruitment processes. The other is a study where Professor MacDonald will assess the first stages of recruitment of women in the shipping and maritime industries and includes a review of recruitment adverts to identify good and poor practice. This will result in a ‘Professionals’ Guidance’ report that will outline good practices in recruitment and practicable ways of overcoming unconscious bias in the recruitment procedures and adverts. Another Taskforce project is the ‘Speaker Bank’ - a directory of women speakers and their fields of expertise. In maritime, conference organisers can struggle to identify women to speak on a relevant topic at events. The Speaker Bank addresses this and provides a resource of speakers, which highlights their areas of industry expertise. Looking to 2019 and beyond campaigns will include ‘The 100%’ - which asks: how do you know you have the best person if you don’t reach out to the 100%. There will also be mentoring programmes through its retention and progression subgroups.

The UK maritime sector in numbers.

£47

For every

billion

£1

in turnover contributed by maritime sector in 2017.

in turnover generated by a business in the Maritime Sector in 2017, an estimated 20p was generated in gross profit.

£18.9 billion business turnover generated by shipping in 2017.

£17 billion

£5.2 billion

in tax revenues for UK Exchequer generated by maritime sector in 2017.

£12.4 billion

in GVA contributed by maritime sector in 2017.

220,000 111,000 jobs for UK employees generated by maritime sector in 2017.

jobs generated in Scotland, South East and South West.

valued exported services generated by maritime sector in 2017.

Highest concentrations of business turnover generated in 2017 were in London (£12.3 billion), the South East (£10.3 billion) and Scotland (£9.9 billion).

Source: the economic contribution of the UK Maritime Sector (a Cebr report for Maritime UK, August 2019). (The Maritime Sector is defined as consisting of the individual shipping, ports, leisure marine, marine engineering and scientific and Maritime Business Services industries, each of which comprise a diverse array of activities.)

Horizons September 2019 7

SPECIAL FEATURE

Ship lenders make step change as Poseidon Principles kick in. Words: Paul Bartlett

The 11 founding members of the framework will be joined by many more in the months ahead, sources say, demonstrating that the institutions which finance the world’s shipping sector take the future of the planet very seriously. Two leading bankers speak to Horizons about the framework’s importance to the shipping industry:

Launched by the Global Maritime Forum (GMF), an international foundation dedicated to promoting sustainable shipping in the carriage of world trade, the Poseidon Principles (PP) are the brainchild of eleven founding signatories and supporters – Citi, Société Générale, DNB, ABN Amro, Amsterdam Trade Bank, Credit Agricole CIB, Danish Ship Finance, Danske Bank, DVB, ING and Nordea, supported by the GMF, University College London Energy Institute, the Rocky Mountain Institute, LR, A.P MøllerMaersk, Cargill and Euronav. Who’s involved? Two of the principal bankers leading the initiative head sector-leading lending institutions based in the US and Norway. Michael Parker is the London-based Global Industries Head for the Shipping, Logistics and Offshore industries of Citigroup and Kristin Holth is Executive Vice President, Global Head of Ocean Industries at DNB in Oslo. Both have been closely involved in the PP drafting process. Parker sees the initiative as an essential driver in support of the IMO’s ambitions between now and 2050. “As a result of this move, capital will only flow in the right direction,” he told Horizons, “and a customer’s approach to sustainability will be a key measure. We will help our clients to find a way of ensuring that capital invested goes towards efficient clean shipping and 8 Special feature

no longer, as it has done in some cases, towards speculative asset play.” “What this does is it shows shipping’s direction of travel,” declared DNB’s Holth. “This is the world’s first sector-specific climate alignment financing initiative and it will establish a framework for banks to assess and disclose their climate alignment status on a portfolio basis. “Each of us will have to find a way of introducing a climate alignment component into our lending activities and credit decisions. Our loan books are, of course, all different, comprising different owners, ship types and geographical operations. What is important, though, is that the base information per vessel will be the same for all banks.” How will Poseidon Principles work? In practice, member banks will use quantitative methodologies to assess their existing portfolios and future transactions will be gauged in terms of climate alignment. The UN body’s data collection system, now mandatory for all vessels of 5,000gt or more, will provide a convenient gauge. Under amendments to MARPOL, ship operators’ data on fuels consumed on board, as well as transport work undertaken, must be recorded and logged with flag states annually. Made available to financial institutions, this data will enable

..ensuring that capital invested goes towards efficient clean shipping and no longer towards speculative asset play

them to calculate their overall portfolio alignment, as well as identifying laggards in the sustainability advancement process. DNB’s Holth sees introducing the PP as a two-stage process. The first stage – agreeing and drafting – has now been completed. Implementing the principles is the second stage, and this will take some time. In practice, Holth said, DNB already undertakes regular client reviews to assess shipowner strategies on various criteria, including sustainability, vessel performance initiatives and ship recycling strategies. But, she said, the bank will now be taking things a stage further, asking its clients how they plan to adapt their businesses to meet future climate alignment ambitions. “The key thing is alignment with the IMO and I think things will move much faster now,” said Citi’s Parker. “And there is no stopping any signatory from going further if they wish.” Why is this so important for shipping? The PP are an absolutely essential process. LR’s CEO, Alastair Marsh, has declared that zero-emission vessels must enter the fleet by 2030 at the latest if the maritime industry is to stand a chance of meeting the IMO’s ambition of achieving at least a 50% reduction in greenhouse gas emissions by 2050 compared with 2008 levels. His views are based on Lloyd’s Register’s sectorleading research into how the IMO’s 2050 ambitions can be achieved. Katharine Palmer, LR’s Head of Sustainability and one of the authors of the classification society’s studies, encourages the industry to truly engage and collaborate in the potential pathways discussions immediately to ensure they successfully plan for the future. The entire marine community playing a part in ship construction and operations over the

next decade must consider the implications of design choices today to ensure that the ships will meet the future requirements. Adopting new technologies, operational optimisation, and design improvements to raise the productivity of existing vessels are all essential to meet the IMO’s interim ambition – a 40% reduction in greenhouse gas emissions by 2030 compared with 2008 figures. Shipping’s journey to zero-carbon As with any industry evolution, there are the highly progressive sector pioneers whose managers are already investing in the fuels and digital technologies of tomorrow. For the other thousands of maritime stakeholders, the journey must now start, and they must now engage to plan for the future. DNB’s Holth surmised “we already see a big change that has been taking place for at least the last 18 months”. “And the change in approach applies to capital generally, not just plain vanilla debt,” she added. “The financial market focus is changing, and banks are already assessing their clients’ environmental, social and governance (ESG) criteria and what they plan to do to their business models and ships. From a client’s point of view, they will have to be asking themselves: what are the best proactive steps we can take to improve our ships’ efficiency, and what will be the impact on us if we don’t do anything?” Holth went on to add “we will see how companies handle new requirements and have a continuing dialogue. Clearly this is not an overnight business, but clients not taking the environmental challenge seriously will have to think through the consequences. Capital will, over time, tend towards those having a responsible business.”

Parker also feels that the shipping industry, as the primary conduit of world trade, should definitely have more support from governments and regional economic bodies. He highlighted the success of Norway’s NOx Fund, which has proved a successful catalyst in the pioneering of a range of green shipping technologies. Governments could develop similar initiatives, Parker said, and global capital markets could introduce new financing products such as shipping-specific green bonds as a financial catalyst for innovative projects that make sense. Class societies, he suggested, should play a key role in helping investors and lenders decide how and what to finance. Where capital goes in the future is extremely important and the societies are well-placed to identify the most promising of the new technologies, he said. Accompanied by previous LR and UMAS studies, including Low Carbon Pathways 2050 and ZeroEmission Vessels 2030, LR is uniquely positioned to provide expertise to the Signatories of the Poseidon Principles, ensuring that lending decisions protect and help those who are planning to finance, design or build a ship in the 2020s and who will need to consider how their ships can switch to non-fossil fuel later in its operational life. Finally, Søren Toft, Chief Operating Officer and Executive Vice President of A.P. Møller-Mærsk, said “Shipping’s decarbonisation will require unparalleled innovation. A modern ship is a highly capital-intensive asset with a typical life span of 25-30 years. To deliver on ambitious climate targets, zero-emission vessels will need to enter the fleet by 2030. This leaves us only ten years to develop the new marine fuels, propulsion technologies and infrastructures that will be required. The Poseidon Principles will help us catalyse this transition.”

Horizons September 2019 9

IN FOCUS

Stand and deliver. Focused and effective action defines Alastair Marsh’s leadership as Lloyd’s Register CEO. Words: Nicola Good

Maritime is a hard taskmaster. The demands are relentless – the need to operate 24/7 in unpredictable and sometimes hostile climates, focused on preserving personnel, machine and the environment while conquering the most cyclical of markets. For many, a leadership presence in the shipping is pre-destined – they are simply following family tradition. Others draw satisfaction from having risen through the ranks, fortified by early exposure, some success and a dogged sense of adventure. Immersion by choice is rare – there are few leaders who come to shipping having surveyed the landscape and calculated the risks. Lloyd’s Register Chief Executive Alastair Marsh just happens to be one example.

Speaking to Horizons about leadership, Marsh explains his definition of integrity is that actions are consistent with words.

With more than a dozen years under his belt at the world’s oldest classification society – four as Chief Executive, Marsh is an enigma for many in maritime. Weary of soap boxes and talking shops, the Scotsman prefers focused and effective action for getting the job done. This has been a hallmark of his time at LR as well as its collaboration with the wider industry.

“If I say I’m going to do something, I do it. And if I say I’m not going to do something, I don’t do it. If you stand by your word, then people start to believe that they can trust you as a leader. They know where the lines are,” he explains.

Referencing LR’s support of the Global Maritime Forum (GMF), the organisation behind June’s launch of the Poseidon Principles (see Page 8), Marsh is quick to point out that such initiatives must move beyond networking and the industry meetand-greet if they are to deliver results. “We have to be in a position where we’re influencing what’s happening in the world, and in our industry. The way in which the GMF has evolved is giving us the chance to really step up and talk about all these things. “We’ve got to be able to show the rest of the world that we can work together in a way that the industry has never done before. That’s my hope for the industry. We (LR) decided a year or so ago that we would play a key role in GMF and put a lot of effort in.”

10 In focus

“Consistency is what people need, regardless of whether you are in an organisation like ours. People need to be able to predict what you will do. It’s about security and keeping things calm. They want to understand the strategy and direction. The more you communicate, the more likely it is that your messages will land,” he says. Stressing the importance of communication, consistency of vision and reinforcing the key principles, Marsh, like many of us who’ve had to navigate random and inconsistent behaviour during our careers, professes a preference for clear lines.

Discerning how to get the best out of people is a challenge for many leaders and Marsh admits that he spends a lot of time trying to understand the people that work for him – what makes them tick, how they find balance in their lives and what makes them feel good about working for LR. “Even though I’ve been doing this a while now, it never ceases to amaze me how different people are or what motivates them. Even down to the slightest nuance. It can be a relatively small thing in a person’s life that you have no idea about or no appreciation for, but for them it’s massively important. Leadership is about being empathetic and building a good understanding of how to get the best out of people,” he stresses. Marsh knows how work environments can shape people – his early career as a chartered accountant with PriceWaterhouse, with its exacting

expectations on performance, had a marked impact on his career. Describing his six years there as “absolutely brilliant”, he was given the coaching, training and development that enabled him to achieve. The decision in the mid-1990s that being a partner in an accountancy major was not for him saw Marsh move first into industry & manufacturing and then into technology before he was introduced to Lloyd’s Register by a friend working for the organisation who suggested he had ‘just the job for him’. “At the time, I had no idea what LR was and so I did a bit of research and then met some of the people. I thought long and hard about joining - this is an unusual organisation and I wasn’t certain I‘d fit in. But I liked the feel of the place and the history and heritage that comes with it. I also really liked the charitable mission – an attribute that has remained pretty constant.” And there is no doubt that Marsh has been able to effect change. During his time as CFO, LR was building scale in its energy business and he was behind some significant acquisitions –‘not difficult decisions but big calls’. More recently, he cites the organisation’s digital advance and how it is building opportunities around decarbonisation. A father of two – his daughter of 30 lives in California while his 27-year-old son works in insurance within a stone’s throw of 71 Fenchurch Street - Marsh has a clear view of his position as a custodian and leader of Lloyd’s Register. “We don’t run this company as owners, we are just looking after it. Our ambition is to look after it in such a way that when we hand it over to the next executive team, they take control of an organisation that is in even better shape. All the activity we’ve been doing around new systems, and bringing new skills and expertise is about making this company more robust and fit for purpose in the future.”

Seven things you didn’t know about Alastair Marsh: 1. He sports a Latin vibe – Marsh was born in Venezuela thanks to his father’s posting with Shell 2. Marsh has a liking for shelves – his work/life balance depends on his ability to compartmentalise his daily travails, so he can rest and recharge. In his words “We all need sleep to function, I put my challenges on the shelf and reclaim them when I have to”. 3. It’s all about protein – “I eat anything, but a meal must encompass fish or meat to be a meal”. 4. Marsh has a penchant for Portugal – his favourite holiday destination is the Algarve which is good for golf, another passion. He boasts a sub 10 handicap although his current liking for cycling is starting to limit the amount of time he can spend on the golf course. 5. Rugby and cricket are an essential part of Marsh’s weekend mix – having played centre and fullback in his youth, the impending efforts of Scotland in the Rugby World Cup will be very closely watched - sometimes from inside the stadium. 6. Marsh enjoys a ‘thrilling’ read – Ian Rankin from his Scottish homeland is one of his favourite authors and compulsory reading when he gets to escape. 7. Charitable drive - Marsh sits on the board of the Royal Museums Greenwich where he can put his energies into supporting its governance and fundraising efforts while enjoying his deep interest in maritime and naval history.

Alastair on: Decarbonisation LR is active in joint industry projects on the use of zero carbon-based fuels – biofuels, hydrogen, ammonia and so on. We will stay agnostic on the options – the choice of which option to take is down to the shipowners and yards. The big challenge is having the bunkering infrastructure for the use of these fuels but we’d like to support scaling up of these alternatives. Digitalisation “Digitalisation involves us needing to change our own business and our own business model, then we need to find a way to offer the products and services to help our clients do the same.”

Horizons September 2019 11

SPECIAL FEATURE

Considering LNG? Key safety and technology challenges of using liquefied natural gas as fuel. As adoption increases, Jose Navarro, LR’s Global Gas Technology Principal Specialist, outlines the key considerations and challenges that you need to be aware of to safely design and operate LNG-fuelled ships.

Gas is set to become the second largest source of energy by 2025, with renewables and natural gas accounting for 85% of energy growth and its potential has not been lost on maritime.

challenges and what considerations need to be made to ensure safety at every stage.

It’s clear that the shipping industry has already embraced LNG as a fuel, and according to data from Clarksons (2019), the existing world fleet is made up of 668 LNG-fuelled and LNG-ready ships with an additional 409 in the orderbook. LNG is both a technically proven and a commercially viable solution for shipping today and is a good “transition” fuel, which is able to meet existing and imminent emissions requirements for NOx, SOx, and CO2.

In order to be able to design, build and operate an LNG fuelled ship, one needs to know how to integrate the associated LNG sub-systems, including the fuel containment systems, ventilation and piping arrangements. LR’s consultancy services can help out clients through this process step by step.

However, the safety and technology considerations of integration of the LNG in a ship requires shipyards, owners and designers involved to understand the

• For ship designers, there are various aspects that need to be considered to optimise LNG bunkering on the receiving ship.

Design considerations for the receiving ship

• For shipyards we can perform LNG assessment analysis and risk assessment studies.

Did you know: LNG-fuelled ships

LNG carriers

• 521 vessels in existing global fleet

• 549 vessels in existing global marine fleet

• 330 vessels in orderbook LNG-ready ships • 147 vessels in existing global fleet • 79 vessels in orderbook

12 Special feature

• 127 vessels in orderbook Sources: Clarkson’s World Fleet Register, 3 Sep 2019 & IHS database, 30 June 2019. Marine = ocean-going, propelled, merchant vessels >100GT only.

Boil-Off Gas (BOG) Management: firstly, natural gas is cooled to cryogenic temperatures to create the LNG, so it has a very low temperature compared to traditional fuels and its volume/energy ratio is about 1.6 times. The liquefied gas is stored in insulated tanks, keeping it in a liquid state. However the heat ingress from the tank’s surroundings will increase the temperature inside the tank, causing the liquid to evaporate, generating boil-off gas (BOG). This BOG needs to be managed to prevent fuel tanks becoming over pressurised, which can lead to gas venting. If heat ingress into the LNG fuel tanks is not controlled, venting of harmful gas can occur, causing a health and safety risk to crew and the surrounding area. There are ways of handling BOG, such as managing LNG bunkering operations, burning the BOG or finding other ways of sub-cooling the fuel through a facility onboard the ship. These options need to be considered during the ship design to best suit the ship’s operational profile. Bunkering Operations Optimisation: An essential part of the receiving ship’s design is the compatibility with the bunkering vessel to reduce the time taken to complete the bunkering operations. For efficient LNG bunkering, both ships should be side by side and should be as close as possible to each other. This reduces the piping arrangement lengths and improves hose handling, ultimately reducing the time it takes to complete the bunkering operation, considering the time required for inerting and cooling the bunkering lines during connecting and disconnecting

operations. Additionally, minimising the distance between the bunkering station and the LNG fuel tanks should be considered, as this will also reduce the risk of cryogenic leakage. Incompatibility can be minimised by reviewing the geometric dimension and bunkering arrangements of the two ships, preventing possible movement interference between them, which can delay the bunkering operation. Main challenges larger ships fuelled by LNG Maximising Cargo Space: for larger ships, such as Ultra Large Container Ships (ULCS), consideration should be made to optimise fuel capacity and minimise loss of cargo space. A simple way of doing this is to locate the LNG storage fuel tank underneath the accommodation space onboard the ship. The additional safety considerations of this arrangement to the crew can be carefully managed by installing containment systems around the LNG and the surrounding area of the tanks; thus, in the event of a fire or leak, the crew are protected by the containment system. Containment Systems Considerations: there are different containment systems

available - one such example is the membrane technology, which is designed to contain LNG cargo at cryogenic temperatures (i.e. -160Â°C). It consists of a small layer of membrane supported through insulation by the adjacent hull structure. Alternatively, an independent self-supporting prismatic tank can be used. With both such containment systems it is possible to maximise the ship hull volumetric efficiency and fit practically the entire fuel tank beneath the main deck without any significant reduction of the cargo space. Both systems are provided with a secondary containment system to prevent cryogenic risk to the ship structure. To ensure safety, the fuel tank is separated from the cargo spaces by using a cofferdam. Refuelling: LNG is transferred from the bunkering vessel to the ships fuel tank, which is located underneath the accommodation. Crew accommodation onboard ULCSs tend to be fitted on the forward section of the ship where the side shell lines are not parallel. The receiving and bunkering ships need to be positioned within the parallel body to improve compatibility. If the fuel tank is located at the front of the ship, and the

ULCS bunkering station is located aft, the bunkering pipes will be longer and therefore LNG will have to flow through the pipes along the ship. To prevent hazards, pipes need to be double-layered and ventilated to have sufficient flexibility to accommodate ship movements and possible thermal stress. Flexible hoses can be used to compensate for the ship movements during bunkering operations to prevent the pipes breaking. For Very Large Crude Carriers (VLCC), the LNG fuel tank can be located above the main deck, so cargo capacity is not affected. Furthermore, to ensure sufficient endurance of the ship, the tank capacity should be in the order of 7,000 cubic meters and will require at least two large tanks positioned on deck. Structural detailed consideration and adequate appraisal of stability and visibility issues are needed as a result of having such large tanks on deck. Designers can also evaluate the possibility of placing the LNG fuel tank under the deck within the cargo area of the VLCC, using membrane or prismatic containment technologies, with minimum impact on the shipâ&#x20AC;&#x2122;s cargo capacity.

Horizons September 2019 13

SPECIAL FEATURE

Can superyacht designs be innovative and still comply with international safety standards? Engel-Jan de Boer explains the various options available to yacht designers and builders that enable freedom while still meeting the SOLAS regulation requirements.

If you want to build a ship strictly to the international rules, there are some requirements that are usually undesirable on a yacht. High door sills, no windows on the lower tiers of superstructure, limited hull openings and bridge windows that should be slanted forward, non-smoked and non-polarised. Designers will be faced with the need for some freedom from those requirements, this can be done through exemption, equivalent arrangement and waiver. Exemption Exemption is allowed under Reg. 4 of SOLAS Chapter 1. The main issue for flag states is that they are bound to declare and document any issued exemption to the IMO. An excessive number of exemptions or frivolous ones based on the will to register yachts may be frowned upon and eventually result in a flag getting bad marks, and possibly downgraded. Nevertheless, there are issues for which exemptions are regularly granted, such as position of navigation lights, bridge visibility and other non-critical issues, where good justification can be provided. Equivalent arrangements Equivalent arrangements are allowed under Reg. 5 of Chapter 1. The approval of an equivalent arrangement is based on a risk assessment and agreement on a â&#x20AC;&#x153;tradeoffâ&#x20AC;? to compensate for deviating from the strict requirement and restore a level of safety identical or higher than the one obtained by following the rule. A common example being the provision of a larger than required amount of life rafts and additional survivability in exchange of life boats. For the required luxury finishes, there can be larger than allowed combustible materials in some spaces in exchange for a sprinkler

14 Special feature

system. This method requires the most work, but allows quite a large level of flexibility, and does not carry with it the requirement to declare granted arrangements to the IMO. Nevertheless, it is good to have the arrangements carefully documented so that Port State Control (PSC) inspectors can see that the required level of safety has been met. Waiver The third and easiest way is a waiver by the Flag to enforce a given requirement. SOLAS explicitly states that this is a possibility for administrations in specific rules, but the administration could grant waivers in other cases. This does come with the risk that the PSC could identify the waiver as a deficiency. Red Ensign Group and Marshall Island flags As mentioned, the best option would be to obtain agreement on equivalent arrangements for the desired deviations. However, this process is cumbersome, and the risk assessments are difficult to pass through class and flag. LRâ&#x20AC;&#x2122;s yacht specialists were recently involved in a refit with a list of 37 issues to be passed. The documentation and clearing of those took several months of concentrated efforts, meetings and back and forth communication. Some flags of the Red Ensign Group, traditionally more involved with yachts, decided to come together and create a code that is essentially a list of standardised tradeoffs. They monitor yacht design and are knowledgeable of the demands that will be made in terms of arrangements, materials and other unique design features. That original Large Yacht Code, produced in 1997, is generally supported by the members of

the IMO and the denoted deviations can be granted systematically, provided they strictly follow the code. The Marshall Islands, Malta and several other non-Red Ensign Group flags have followed the same path, and certify yachts on the basis of their codes in a similar manner. Following the release of the Large Yacht Code and its amendments throughout the years, the Red Ensign Group together with the industry to evaluated the requirements of small passenger ships (with a maximum capacity of 36 passengers), and the tradeoffs that the IMO could accept in this case. Passenger ships are notoriously harder to certify than vessels carrying 12 passengers or less. Consequently, the Passenger Yacht Code was developed and is now incorporated as Part B into the latest Red Ensign Group Large Yacht Code (with Part A being the requirements for yachts carrying up to 12 passengers). The same flags strongly encourage private vessels, which in theory are exempt from SOLAS, to follow the codes at the design and build stage to guarantee safety at sea and protect owners from unexpected PSC problems. If there was a serious incident, then a yacht owner that does not follow any codes will have a lot of explaining to do. Certification A vessel that is designed and built to these codes will have a flag certificate of inspection confirming its status but will also be issued the necessary statutory certificates (cargo ship safety or passenger ship safety), along with a declaration of exemptions granted with reference to the code. Image on right courtesy of Oceanco

78% 78% of our customer’s would recommend LR’s products of services*

LR has been involved with the classification of both sail and motor yachts for more than 125 years. In the last decade, we have evolved with the growth and changing demands of the market, making us one of the leading providers of classification and compliance services. This is down to LR’s service delivery, including our value-added technical expertise as advisors and innovators, and our integration in to the exclusive network of key stakeholders.

* Source: Lloyd’s Register Market Perception Report – The Superyacht Agency

Horizons September 2019 15

SPECIAL FEATURE

Fresh wave of investment in growing ferry sector. The ferry sector is ideally placed to adopt new technologies; Horizons takes a closer look at the UK and North Asia, where creative thinking and fresh investment is on the rise.

A flurry of new investment in the ro-ro freight and passenger sector indicates that this specialised market is on the up. Markets in the Baltic and the Mediterranean are performing well this year, with both passenger and freight volumes increasing. Baltic operators such as Tallink and Finnlines, a Grimaldi subsidiary, are reporting growth while heavyweight ferry lines in the Mediterranean including Attica, DFDS and Grimaldi are also looking strong. The UK’s Chamber of Shipping has an upbeat view. Commenting on the UK’s ferry sector, Anna Ziou, Policy Director (Safety and Environment) says: “As an island

16 Special feature

nation with many domestic connections and international links, the ferry sector fulfils a vital role in the UK’s transport infrastructure. “With set routes between established terminals, it is also a sector of shipping that lends itself to new technologies, such as charging points for shipboard energy storage installations and new fuel infrastructure for LNG-powered ferries.” “At the Chamber, we are watching developments in this sector closely and believe there are a wide range of exciting opportunities to adopt new and more sustainable technologies.”

LR has a specialist group focusing specifically on this area. Jane Jenkins, the classification society’s Lead Specialist on Passenger Ships, also has positive views. She points out that ferries, in the broadest sense, are better placed than most other ship types to adopt new technologies to increase ship productivity. Ropax vessels and passenger ferries operate on established routes and the ports involved are key links in many companies’ supply chains. Yet there are still, universally, many old and inefficient ro-ro and passenger ships in service. The sector is an obvious target for some creative thinking and fresh investment.

More on ferries Interferry 2019 5-9 October 2019 London, UK •

LR’s passenger ship specialists will be at Interferry this year and will be on hand to talk about the challenges and opportunities that come with digitalisation and decarbonisation that face the ferry sector.

•

Vince Jenkins, our global head of technology and risk management, will be speaking about maritime nuclear power during Interferry’s ‘The Drive Toward Zero-Emission Ferries’ session on Monday 7 October. For more information, please visit lr.org.

Growth in North Asia

Sector in growth mode According to Peter Iles, a director of STS International, a ferry and short-sea consultancy, the sector is in growth mode for several reasons. One reason is that ferry firms operating in and outside emission control areas (ECAs) are having to reassess their business models due to environmental issues. For those operators outside of the Europe sulphur emission control area – in the Mediterranean, for example – new fuels will be required from next January, with significant implications for trading economics. However, the economics of fast ferry operation in these seas will not change because these vessels already burn marine gasoil. Ferry firms running ships in the emissions control area, meanwhile, have to watch the drive for improved fuel economy and in-port performance. Another reason, Iles says, is an ageing fleet and a significant number of inefficient vessels relative to latest designs. “New ships are substantially more fuel-efficient. Economies of scale and high capital costs mean that owners and operators are looking to reduce fleet size by going for larger and more efficient ships.” Iles also believes that many ferry owners and operators are expecting rationalisation in the European ferry sector to continue and may gather pace.

Commenting on North Asia’s ferry sector, Francesco Ruisi, LR’s Passenger Ship Support Centre (PSSC) Manager in North Asia, highlights the growing expansion of ropax vessels in China. “In North Asia, particularly China, the ropax new building market is expanding quite fast with plenty of foreign owners, including DFDS, Viking Line, Grimaldi, Moby Line, Stena, Visby, a nd ENTMV now building their new ships in China.” “The country is no stranger to building ferries but are regularly built to Asian specifications, rather than European. With reputable yards building up their experience and producing well-built vessels, some production schedules are hindered by high specifications for the European market,” continues Ruisi.

In focus Jane Jenkins, LR’s Lead Specialist on Passenger Ships, will be exploring the following topics ahead of Interferry 2019: •

Ferries: Test bed for new technologies

•

What lies ahead: 2050 and beyond

To find out more, please visit lr.org/articles

Ruisi points out that some shipyards are seeing ropax construction as the first step to developing capability and experience in the passenger market, so they can enter the cruise ship sector in the future. Historically, only two European-owned ropax were built in China. Now, ropax construction is booming. The export Chinese orderbook has risen and most of these ships are for export, joining the fleets of Stena Line, DFDS, Gotland, Viking Line, etc. This is testimony to China’s longheld ambition to construct sophisticated designs and great progress has been made on a variety of vessel types. Over the past 10 years, more than 200 ropax have been built in North Asia (China 105, Japan 90 and South Korea 27), with over 54 in the orderbook (China 36, Japan 15 and South Korea 3).

Horizons September 2019 17

INNOVATION

Digitalisation drives shipping. MV Traviata: the home of sustainability and digitalisation discussion and showcasing technology. Images courtesy of Wallenius Wilhelmsen

Digitalisation is shaping the shipping industry’s future in every aspect, whether that’s on board or onshore, taking advantage of new designs and technologies to improve efficiency and, most importantly, ensuring safe operations to protect our crew. Since the International Maritime Organization (IMO) announcement last year to reduce at least half of shipping’s greenhouse gas emissions by 2050, digitalisation has been viewed as a key enabler to help maritime meet this goal.

Craig Jasienski, CEO of Wallenius Wilhelmsen, pictured talking at MV Traviata’s naming ceremony in Norway, June 2019.

18 Innovation

Whilst onboard Wallenius Wilhelmsen’s newest vessel MV Traviata in June, maritime and technology experts came together to discuss the role of digitalisation in tackling’s maritime’s decarbonisation challenge, whilst also showcasing existing digital solutions. Like her sister vessel Titus, the MV Traviata sets a new benchmark in terms of energy efficiency and is one of the most environmentally-friendly ro-ro vessels in the Wallenius Wilhelmsen fleet. During the naming ceremony of the

LR-classed MV Traviata, Craig Jasienski, president and CEO of Wallenius Wilhelmsen, talked about shipping’s responsibility to the environment. “We use the world’s oceans, we have 130 vessels sailing across the seas, so we have a responsibility to take care of the world in which we work and that’s the ocean” reinforced Jasienski. “Awareness and understanding around carbon emissions has really increased over the last couple of years, but it has mostly been driven by the policy space – regulators like the IMO,” said Katharine Palmer, LR’s Global Sustainability Manager, who is leading the sustainability movement in the classification society. “There is still a gap when it comes to understanding how sustainability equals success and what this can mean for business. It’s about truly understanding the sustainability benefits and impacts, so that you can turn these into something successful. Currently, that sentiment is not embedded throughout the sector,” Palmer stated.

What are the most important things that need to change to accelerate digitalisation in maritime? In terms of accelerating digitalisation in the maritime world, Vigleik Takle, Senior Vice President of Maritime Digital Solutions in Kongsberg Digital, believes “the first step is making sure vessels are data enabled and digital ready.” According Per Tunell , COO of Wallenius Marine, another key part of digitalisation in the shipping industry is a change of mindset and approach to current processes. “There needs to be a mind shift among shipowners and an increased degree of trust in data-driven decisions. Decision-makers need to realise the huge potential that lies in front of us. We need to dare challenge old habits and structures that hinder efficiency gains throughout the entire supply chain.” “We also need to overcome the barrier caused by a lack of standardisation in shipping in order to be able to make use of all data. From the very detailed information on specific machinery components onboard to more business-related data such as scheduling, delivery requirements, pricing as well as information related to ports and terminals” Tunell continued.

How will the drive for digitalisation transform maritime? Nikolai Astrup, Norway Minister of Digitalisation, talked about the importance of digitalisation at the MV Traviata’s naming ceremony, “the future belongs to those [shipping companies] who stay ahead, those who embrace technological change with a sense of urgency, the companies that survive and thrive tomorrow – are the companies that invest in sustainable solutions today.” Shipping’s journey towards a zero-carbon future should not be disconnected with digitalisation. “It can offer a means of measuring efficiency and fuel consumption by providing and managing data, allowing the industry to make informed decisions about how it can meet these decarbonisation goals. It also underpins improved transparency and disclosure in the supply chain” said Palmer. Digitalisation can “enhance insight and reducing complexity to reap benefits like increased efficiency, safety, and sustainability”, according to Takle. Tunell highlighted the strong drive for sustainable shipping in maritime and “digitalisation is the tool that enables this through continued automation, advance analysis and operational optimisation, as well as improved planning and execution” he commented. “Digitalisation also provides increased and crucial transparency between stakeholders. Maritime will become smarter, safer and much more efficient with the help of digitalisation.” Tunell added. For Joakim Thölin, President BU Marine Separation & Heat Transfer Equipment at Alfa Laval Marine, digitalisation has already had significant impact on logistics. “When it comes to ship operation, digitalisation has had and will continue to be significant especially in connectivity service for compliance and in reducing operating costs. “For example, digitalisation has made it possible to monitor vessels and help reduce fuel consumption by choosing optimal routes,” Thölin continued. Katharine Palmer speaking at the MV Traviata event in June 2019.

Horizons September 2019 19

REGULATION

The changing regulation landscape of yachts, ferries and gas tankers. LR’s Principal Specialist of Regulatory Risk, Development and Compliance, Andrew Sillitoe, takes a closer look at some of the specific regulatory developments affecting the yacht, ferry and gas tanker sectors. To address identified safety and environmental concerns in a way that is globally effective. relevant and proportional to the risks involved, some regulations apply to all ship types and others apply only to a specific sector or ship types. In this edition of Horizons, we examine some of the specific regulatory developments for three different sectors: yachts, ferries and gas tankers. Yachts The IMO has previously introduced stricter controls on nitrogen oxide (NOx) emissions for engines on new vessels, known as the Tier III requirements. Large yachts, greater than 24 metres in length and less than 500gt used for recreational purposes, were previously granted a five-year extension compared to other vessel types. This will expire in 2021. At the Marine Environmental Protection Committee (MEPC 74) meeting in May 2019, the options of continuing the

20 Regulation

extension or introducing alternative NOx emission limits were discussed. However, the final decision was for the existing extension to expire on the planned date in 2021, after which the NOx Tier III requirements will apply to these yachts too. Yachts on non-commercial voyages sailing in polar waters are also the subject of ongoing discussions at the IMO. As they are not subject to SOLAS, the Polar Code does not apply to them on a mandatory basis. To address the risks associated with potential emergency incidents in the polar regions, the Ship Design and Construction (SDC) sub-committee is working on recommendatory measures for these yachts, along with smaller fishing vessels. Ferries As a ship type, ferries can be affected by regulations which affect all passenger ships, as well as those which are specific to ro-ro

ferries. Some of the latter also affect ro-ro cargo vessels separately. Confirmed upcoming passenger ship changes include: • After concerns about whether ro-ro cargo and ropax would be able to meet the requirements of the Energy Efficiency Design Index (EEDI) Phase 2, the reference line under the EEDI has been adjusted as of 1 September 2019, along with a new deadweight threshold for larger ro-ros. • Computerised stability support for the master in case of flooding will be entering into force for existing passenger ships from 1 January 2020. • Damage control drills will be required for passenger ships from 1 January 2020. • Clarification of the applicability of fire integrity requirements for the windows of passenger ships, will be in place from 1 January 2020. • Evacuation analysis will be mandatory for

all new passenger ships from 1 January 2020, bringing them into line with ro-ro passenger ships that have already had this requirement. • Sewage controls within the new Baltic Sea Special Area under MARPOL Annex IV will apply to existing passenger ships from 1 June 2021. Proposals for new requirements, which are at earlier stages of discussion, include two subjects addressed at the Maritime Safety Committee (MSC 101) in June 2019: • Work is underway to develop amendments to SOLAS addressing fires on ro-ro vessels. In the meantime, interim guidelines were approved at MSC 101 to minimise the incidence and consequences of fires on ro-ro spaces and special category spaces of new and existing passenger ships. These include guidance on a range of subjects, including power supply equipment and cables, fire detection and alarm systems, extinguishing and containment, and integrity of life-saving appliances and evacuation. • The IMO has been considering concerns about the high frequency of ferry incidents, mainly involving domestic ferries in developing countries, which have led to high numbers of casualties. While the IMO’s regulations do not have mandatory powers over vessels that only trade domestically, a plan of work has

been agreed to develop information material and guidance which will be made available for countries to apply on a voluntary basis. This will include collection and analysis of best practice, developing model regulations on domestic ferry safety, incorporating the model regulations into domestic law, and developing online training material on domestic ferry safety. Gas tankers Due to their potentially hazardous cargo, gas tankers are subject to their own mandatory code in addition to other safety and environmental controls. This International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC Code) has been subject to one recent amendment and some interpretations: A relaxation of requirements is being introduced for practical reasons for the fire integrity of wheelhouse windows for gas carriers. The IGC Code previously required these windows to be A-0 fire rated, but this proved to be impractical. The code is being revised from 1 January 2020, with flag states given the option to implement the change earlier. At MSC 101, a circular was approved containing unified interpretations on the following fire-related aspects of the IGC Code: • Onboard discharge testing of dry chemical powder fire-extinguishing systems • The design temperature for piping, fittings

and related components of a water-spray system for weather deck areas above fuel oil tanks. The EEDI requirements for gas tankers were reviewed at MEPC 74 and some specific changes approved: • For LNG carriers of 10,000 dwt and above, the Phase 3 reduction rate has been kept the same, but brought forward from 2025 to 2022. • For smaller gas carriers of 2,000 to 10,000 dwt, the reduction factor for Phase 3 has been confirmed as previously agreed. • For larger vessels, the previous single size category has been divided into two to introduce an earlier Phase 3 reduction rate of 30% from 2022 for vessels of 15,000 dwt and above, and keeping the 2025 Phase 3 30% reduction target of 2025 for vessels of 10,000 to 15,000 dwt.

For further information about these or any other upcoming regulatory changes, please contact your local LR office or visit www.lr.org/imo. Click here to subscribe to receive our bulletin with updates of IMO agendas, reports and our forthcoming legislation document.

Horizons September 2019 21

TECHNICAL MATTERS

Assurance beyond Class. A selection of case studies that investigate assurance beyond Class.

Identifying and assessing risks to ferry passengers and regulations, local and worldwide practices. A risk workshop was held that gathered stakeholders from the medical community, ferry users, vessels crew and Transport Canada. Individual risk profiles were developed for each phase of operation for both allowing passengers to occupy vehicles and requiring them to transfer to the passenger deck for the duration of the voyage.

Newfoundlandâ&#x20AC;&#x2122;s Department of Transportation Works (DTW) faced pressure from Bell Island Ferry users to allow passengers with mobility and health challenges to remain in their vehicles during transit. The DTW required a full evaluation of the risks involved to enable them to make a decision.

LRâ&#x20AC;&#x2122;s Applied Technology Group (ATG) applied a risk-based approach to identify the hazards and resulting risks to ferry passengers who remained in their vehicles, and those who moved to the passenger deck for the ferry crossing. The study reviewed the vessel layout and operational details, applicable standards

While there were risks associated with both scenarios, the overall risk profile was found to be higher if passengers were allowed to occupy their vehicles during transit. LR proposed a number of recommendations and action items to further mitigate risks identified during the study. LR provided the DTW with a clear picture of the risks faced by passengers on the ferry and enabled them to make riskinformed decisions for implementation of new policies.

Marine fuel contamination investigation After bunkering high sulphur fuel from different ports in the US Gulf area, almost 30 ships reported severe operational problems and component damage to fuel system equipment. Most of the ships observed sticking of fuel pumps and some accelerated wear to the fuel pumps and other fuel system components. These problems left the ships without power and in the most extreme cases the ships ran out of spares on board and had to be towed to the nearest port. LRâ&#x20AC;&#x2122;s fuel oil bunker analysis and advisory service (FOBAS) analysed the supplied available data, and based on past 22

Technical matters

experience, quickly concluded that fuel supplied in the area may be the main cause of the problem. On hearing the initial problems from ships, FOBAS started an in-depth analysis of fuels from the gulf and found anomalous components in the fuel. Based on this initial finding, FOBAS issued an alert within a week to its client base, warning them of the potential problems in the area. In-house experience, availability of historical data of such fuels, coupled with an in-depth analytical capability, enabled FOBAS to look for specific contaminants that have the potential to cause such problems.

LR can investigate any issues associated with marine fuels or any operational problems/component damage where fuel is suspected as the main cause.

Supporting port risk analysis with ship simulation

A proposed increase in the maximum allowable wind speed for allowing berthing of LNG cargo ships at a client facility raised concerns about the impact on safe operations. LR ATG performed a comprehensive risk analysis to determine what additional risks may arise if the wind speed criteria were to be increased and to identify any additional mitigation measures. A hazard identification (HAZID) process was used to identify hazards and associated risks during operations. The HAZID workshop identified that with increased wind speed limit, some hazards could become high risk, and would hence require additional controls. Real-time ship simulations were carried out for a number of the identified high-risk hazard conditions. The goal was to assess, in a virtual reality environment, the risks

that will be faced by a typical Harbour Pilot when manoeuvring LNGC vessels in the port under the higher allowable wind conditions, as well as to assess the benefits of any safeguards and controls identified during the workshop. The simulations were carried out in a full mission bridge simulator and following an analysis of these, LR provided a detailed report to the client. The client was provided with recommendations to reduce risk under current wind speed criteria and information that allowed them to make an informed decision about raising the wind speed criteria. The HAZID and risk assessment methodology, supported by a detailed simulation, can be applied to other port facilities needing to make decisions about changes to their operations.

Barge towing stability model simulation A client purchased a number of ro-ros, in addition to the rights of the route they operate across the Gulf of Mexico, connecting rail lines at either end. Their challenge was to continue serving the route in a number of ways, one of which was by towing the ro-ros. The reason they approached LR was to determine the stability of the vessels during a towed crossing.

The client was quickly made aware of the towing stability risk. This helped them evaluate the potential of their assets. In addition to CFD modelling being faster than model tests and sea trials, this approach was also more cost-effective. The client reported that the study was useful in their decision-making and,

following sea trials, they were impressed by how close our predictions were to reality. LR can apply the same technique to predict the manoeuvring performance and motion of any vessel both in calm and rough seas.

LRâ&#x20AC;&#x2122;s Ship Performance Group built a detailed ship-scale three-dimensional Computational Fluid Dynamics (CFD) model of the vessel that included the rudders, propellers and bilge keels. Simulations were then carried out at the operating speed of 8 knots. The ship was allowed to move freely in six degrees of freedom, constrained solely by the towing line and all ship motions were recorded. To put these results into context, they were cross-checked with the towing forces and motion amplitudes. It was found that the directional stability and towing forces were going to cause problems under the proposed set-up, which would potentially become worse in rough seas. Horizons June 2019 23

NEWS

What’s happening in our world. The world doesn’t stand still and neither do we. Catch up on the latest developments at LR from our teams around the globe.

Awarding the world’s first digital type approval to HHI. Hyundai Heavy Industries Co., Ltd. (HHI) received type approval from LR for the network security digital component of its Integrated Smartship Solution (ISS) in August, confirming that the approved component performs its functionality seamlessly. The is the first ever type approval of a digital component. Digital type approval delivers an assurance system to provide confidence in the market for the supply of digital components and offers all the benefits of traditional type approval; reassurance on supply chain quality and robustness

within the marine environment. Digital type approval can apply to both components within information technology (IT) and operational technology (OT) systems. Type approval of HHI’s first line network security component confirms it complies with the latest LR type approval test specifications and the requirements specified in LR’s type approval system procedure for components that are part of digital systems onboard ships. HHI’s first line network security component plays an important role as it establishes a barrier

between controlled internal networks and untrusted outside networks. This helps to mitigate against information and operational vulnerabilities, as an increasing amount of data is stored, processed and transmitted by digital systems onboard ships. Young-Doo Kim, LR’s North Asia Technical Support Office Manager, said: “We believe this is the first step in moving towards digital ships consisting of approved digital components with safeguards in place to protect against cyber incidents.”

Welcoming the UK’s Clean Maritime Plan. The drive for a cleaner and greener maritime sector presents huge opportunities for the UK to become a world leader in innovative, climatefriendly maritime technologies and services, with the UK Department of Transport seeking to introduce zeroemission vessels by 2025, well ahead of the 2030 requirement under the IMO’s 2050 Greenhouse Gas ambition.

24 News

Speaking at the July launch of the UK Department for Transport’s Clean Maritime Plan, which is described as the “Environment Route Map of the Maritime 2050 Strategic Vision,” Maritime Minister Nusrat Ghani MP said “It’s clear that we need to go further and faster if we are to position the UK at the forefront of clean maritime technology. The Clean Maritime Plan lays out our roadmap for getting there,

setting out clear ambitions and when we expect to reach them.” Welcoming the publication of the Clean Maritime Plan, LR CEO Alastair Marsh said: “Climate change is one of the greatest challenges for the safety of our world. All participants in the maritime value chain must collaborate to accelerate the transition to low, or no, carbon operating models.”

Common Structural Rules Software updated.

VLCC ‘eco-tanker’ design receives LR AiP LR presented HHI with approval in principle (AiP) for a VLCC ‘eco-tanker’ design at a ceremony during NorShipping in June. The vessel will be capable of using a combination of volatile organic compounds (VOC) mixed with LNG as fuel and Norsepower’s rotor sail solution for wind-assisted propulsion. This development was the result of a joint development project (JDP) collaboration between HHI, LR and Norsepower. The VOC recovery system was developed by HHI and will allow the VLCC to use fuel produced from naturally-occurring vapor from the cargo tank during operation. The AiP has been verified for interface and control logic stability with other systems, resulting in reduced emissions and improved efficiency. The impact of the installation of Norsepower’s rotor sail solution, such as

Supporting LNG growth in China.

structural reinforcement and visibility calculation, was reviewed using computational-fluid dynamics (CFD) during the JDP. It was confirmed that it has the potential of providing 5%-7% fuel savings, dependent on operating routes. LR facilitated a high-level hazard and operability (HAZOP) workshop for the LNG fuel supply system and associated technology in accordance with LR’s ShipRight Procedure for Risk-Based Designs. The concept design has been examined in conjunction with the result of the HAZOP. Nick Brown, LR’s Marine & Offshore Director, presenting the AiP certificate, commented: “We are proud to award this AiP to HHI, with collaboration from Norsepower. LR has a unique expertise in the LNG field and alternative fuels, which is widely recognised by the market. This LNG-fuelled VLCC is a clear step towards meeting the IMO’s 2050 GHG goal.”

LR has signed an agreement with COSCO Shipping LNG Investment (Shanghai) Co., COSCO Shipping Heavy Industry Co., Ltd, Jiangnan Shipyard (Group) Co., Ltd. , Marine Design and Research Institute of China, Shanghai Ship and Shipping Research Institute and China Classification Society to design and develop the first 220k LNG carrier with a GTT Mark III membrane containment system. Ms. Wei Ying, LR’s Senior-Vice President, Greater China, said: “LR is the clear leader for gas ship construction in China, with 48% of

Common Structural Rules Software LLC, a joint venture company formed by LR and ABS, has released updates to its software products to simplify compliance with existing and future IACS Common Structural Rules (CSR). The software provides users with an easy way to evaluate designs. It has recently been cross-checked by IACS and both CSR software products demonstrated very high accuracy for calculations against comparable software.

New version of LR Class Direct. LR has released a new version of LR Class Direct (LRCD), which adds a number of new features and improves the overall user experience for our customers. LRCD is our online platform to inform partners and clients about the classification status of their ships/assets and can help them maintain regulatory compliance and manage operational risks effectively.

capacity ordered to date being classed by us. We couldn’t have reached this position without the support of our partners in this project, including COSCO Shipping LNG Investment, who we have worked with for a total of 10 x 174k m3 LNGCs to date; and Jiangnan Shipyard, where we currently have 10 x VLGCs and 2 x Mark III LNGCs in progress. We are committed to supporting the growth in the LNG shipping market in China, and we look forward to contributing to the success of this joint industry project through our unmatched local gas ship experience and expertise.” Horizons September 2019 25

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